Documents required for home loan

People generally have two options when it comes to where they live and ultimately call home. One is to rent a home that someone else owns and the other is to purchase a home for themselves. Home is not only a place to live but also a reflection of who we are. Buying a house is a milestone decision of the life.

People who decide to buy a house often do so because they are ready to settle down in one location and are ready to make a financial investment. When a person has the money to buy a home it may also be less expensive over time than renting. This is where home loan comes into assistance.

Applying for a home loan can be an instant solution to the house-related financial crunch. Further all the banks and Financial Institutions are eager to offer loans at a very premium rate of interest. Also the government of India is pushing their objective of home ownership by way of subsidies on affordable home segment to first time home buyers.

A home loan or housing loan is an amount borrowed by individuals for a fixed tenure from financial institutions to buy, construct, repair or renovate a residential property. The Bank/NBFC charge an interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount which is termed as Equated Monthly Installment (EMI).

The bank provides home loan to the borrower on certain terms and conditions .Banks/ NBFC get the property valued independently and provide the loan on the basis of re-payment capacity of the borrower, also considering the property value and the agreement/Registry amount of the property being purchased. Usually the final sanction amount is lowest of these 3 values.

 

DOCUMENTS REQUIRED FOR HOME LOAN

Applying for home loans online or offline requires the borrower to submit a list of documents as demanded by the loan provider. Documents required for home loan vary as per the employment type of the individual, i.e. salaried or self-employed, The following, however, are commonly requested for from all the applicants:

·         A duly filled bank loan application form

·         2 recent passport size photographs.

·         Proof of identity (Copy of Aadhar/Passport/Voter ID/PAN Card).

·         Proof of address (Copy of latest Electricity Bill/Telephone Bill/Property Tax Receipt/Voter ID/Passport).

·         Last 12 months’ Pass Book/Bank Account Statement for all saving and current accounts

·         Identification of signatures from present bankers or a signature proof such as PAN card.

·         A cheque covering the administrative costs/processing incurred by the bank in processing the application

Documents Requested from Co-applicants

·         Identity and address proof.

·         2 passport sized photos.

·         Proof of business.

·         Identification of signatures from his/her present bankers or a signature proof such as PAN card.

Additional Documents Requested from Salaried Applicants

·         Letter of employment

·         Salary certificate from the employer (original).

·         Copy of ITR along with computation of Income or Form 16 for last 2 years.

·         Last 6 month salary slips

Additional Documents Requested from Self-Employed/Professionals/ Business entities

·         Copy of ITR/Assessment Orders of 3 years.

·         Computation of Income/ Profit and loss account/ Balance Sheets of last 3 years.

·         Audit reports for last 3 years if any.

·         Business registration proof in case of self employed individuals.

·         Statement of Personal assets and liabilities.

·         GST returns for last 4 quarters.

·         Partnership Deeds in case of partnership firms

·         Certificate of Incorporations/Article of associations/Memorandum of associations in case of private ltd company.

Documents related to property

·         Copy of agreement to sell for the property in question. (Sale Deed)

·         In case of builder property purchase copy of builder buyer agreement along with payment receipts.

·         In case of resale copy of complete chain of property papers right from the origination.

·         Copy of allotment and possession letters

·         Copy of house tax, along with other government departmental taxes.

·         Copy of the sanction map of the property

·         Copy of the Occupancy Certificate (OC)

 

Here is a checklist of the documents required to apply for a home loan.

1.    Passport Size Photographs

2.    Identity Proof: Passport / Driving License / Voter ID / PAN Card / Aadhaar Card.

3.    Address Proof: Driving License / Registered Rent Agreement / Electricity Bill (up to 3 months old) / Passport.

4.    Employment Appointment Letter: Required if the current employment is less than 1-year old.

5.    Financial Documents:
o Last 3 months salary slip.
o 6 month bank statement.
o 2 year Form 16.

6.    Property Documents: Sale deed, Khata, transfer of ownership, Ownership Certificate

7.    Advance Processing Cheque: A cancelled cheque for validation of bank account.

8.    Financial Documents:
a. For Salaried Individual: 3 month salary slip, Form 16 and bank statement

b. For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountantc. For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant

9.    Complete Home Loan Application form duly filled.



Property Documents

 1.    Take a look at the title deed. Make sure it is original. The bank does not have a lien on it. Meet the RWA or the property management company to ensure that the owner is genuine and the Deed is correct.

2.    Check the sale deed of the apartment. If it is an apartment the original deed must be checked before it changed hands. Complete history of the apartment must be available from the builder till today.

3.    The building approval plan. For the apartment building as well as for plot. See if unauthorised changes have been made by the current owner.

4.    Land use conversion. For a new colony or for a builder, check that he has a full authorisation to build on the land or design a colony

5.    The Building Completion Certificate. This is important. You have a completion certificate that building is made as per plan. Any compounding charges have been paid.

6.    Occupancy certificate. This is from various agencies like fire, water and Electricity. All have cleared the building and given the NOC in case of fire and connections in case of Water and Electricity. All dues have been cleared.




Checklist for buying properties

 

1.    Each document you are going to put your signature. It starts from Booking form till Agreement

2.    Approved plans and Commencement Certificate. Verify if the plan seen by you in brochure/Sales material is the same

3.    Title Certificate issued by the Advocate for the land on which building is erected.

4.    N A order, wherever it is applicable. It is important to check when you are buying a property outside city limits. Check all conditions

5.    Check amenities and specifications offered by the builder. You recheck if they are same mentioned in agreement when you go for signing it.

6.    Physically check the work on site

7.    Very Important- Check the registration of the project done with RERA. Check all details filled up on the website of Maha RERA. This is relevant to Projects in Maharashtra only.

 

 

In India, buying property is a particularly demanding task with several hurdles. The exact laws governing the sale of the property might be slightly different in different states, but there are a few permissions and documents a builder or promoter must have if they are selling flats. Here are the legal documents that you should check when buying a flat from a builder.

1.Title Deed

2.Mother Deed

3.Intimation of Disapproval

4.Commencement Certificate

5. Encumbrance Certificate

6.Approved Layout Plans

7.Occupancy Certificate

These are the common and important documents needed before buying a property irrespective of any state and city inside India. If you are looking to buy a property or any loan process, you can visit Prologiq, business management company, Coimbatore, providing Title Services, Appraisal, BPO Data Entry, Property Preservation, and Inspection, REO, Transaction Co-ordination, HUD Preparation, Loan Audit, QA, etc..


1.    Sale Deed: A Sale Deed is the core legal document that acts as proof of sale and transfer of ownership of the property from the seller to the buyer.

2.    Mother Deed: It is a document that helps in the further sale of the property, thereby establishing the new ownership.

3.    Building approval plan:

4.    Commencement Certificate

5.    Power of Attorney

6.    Latest tax paid receipt

7.    Occupancy Certificate




Sale Deed
Title Deed
Approved Building plans
Completion Certificate (Newly Constructed)
Commencement Certificate (Under-construction property)
Conversion Certificate (If agricultural land is covered to non-agricultural)
Encumbrance Certificate
Latest Tax Receipts
Occupancy Certificate


Previous Sale Deed (in case of a resale flat),

Blue Print Plan

Commencement and Completion Certificate

Parking Allotment Letter

Possession Letter

Recent Electricity Bill

Recent Tax Receipt,

Society Registration and Share Certificate

Society NOC, etc.



If you are buying a property and if you are taking a loan from bank then you need to submit some documents:

·         Blue print of the plan from the builder (In case of flat / constructed property)[not relevant for land]

·         Commencement certificate[not relevant for land]

·         Completion certificate [not relevant for land]

·         Permission for Non agriculture use of land

·         If land is originally agricultural, permission from revenue authority is needed.

·         7/12 extract in case of land property [specific to Maharashtra or some equivalent in other states]

·         Previous sale deeds in case of resale

 


 

 





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